Calculating North Korea's Expanding GDP

7/12/2013 6:03AM

According to the South Korean central bank's best guess North Korea's economy expanded 1.3%. The WSJ's Michael Arnold speaks with Alastair Gale about how North Korea's economic data is calculated and why it matters for reunification plans.

This transcript has been automatically generated and may not be 100% accurate.

... the ... the report says Korea's economy expanded by the most in four years last year ... North Korea's economy that is ... for Asia Today o Michael Arnold joining me by Sky bizarre Korea Bureau Chief Alastair Gale and soul ... I was to this is really curious according to this report prepared by the Bank of Korea in Seoul ... growth in the North was its passes in four years and especially base to manufacturing ... and for people you know outside of North Korea of ... you know people wondered what exactly does North Korea produced the sides nuclear weapons in international crises ... like the Oster is not a whole lot of money for concerts or CLSA's tiny ... what's happened last year corns gets its refined prudence should stop contracts thing ... grown over the North Korean submarine base that exports from the end ... of big um ... could make basic costs of about seven so since the uncertainties within the country ... houses are exploring how the ... devil on my ... widgets bolts of ticket to China and since I you know it's been cold or whatever ... so that's also something that such bucking the ... products ... in their economy ... according to assessments by the Korea ... well ... the process of meeting gathering this information to discern when North Korea is not providing information about its economy released on accurate information ... how does the Bank of Korea to produce the system ... another question um ... basically cover story in fresh baked into a form of government ... budgets of what the spirit of North Korea ... I'm a lot about these that's one ... of the of the things let's outlets but its recent run it's the size of ... the bombs on ... iTunes ... it will take to grow they will try to come into China in particular ... um to see how much of traders ... is flowing in ... um um entitle together ... Sterne is that basically perk up ... afterwards based in ... the ... gush of Munnetra but it will stop ... serving New South Korean ... figure switch ... and so on certainty so the whole collection ... and then come up with the state circuits ... is a step in the top ... because the officials is anywhere close to ... I was in the North Korea but it's the best bets for a nonstop ... I see as I understand it the very least even if it's not strictly accurate ... it does give a big idea of you know where the two economies are positioned and how eventually ... yet there is going to be the unification of the Korean Peninsula ... how much of my costs of Korea's write a mean ... is that they would use this ... right yes that's right there somewhere in the future of course South Korea ... a wants to redefine with an awesome that's going to ... be a huge burden on them ... the South Korean economy sunroom ... it makes sense to try to gauge the you the difference in scale them on in the amount of money to ... set this up well in the north ... to bring it all to gradually recovered some of the dignity of a ... softening the ... train coming ... in the North Korea's nineteen ... Souths ... beautiful slows the economy North Korea ... is around thirty two point six of ... the ... South Korea surged ... this um huge difference it's important for ... some reason the state of Opel ... when we talk about something which fall far bigger than the ... reunification ... of ... East and West Germany ... so ... sometimes ... it if they